arun (ca student) (194 Points)
03 July 2008Is the excise paid during the year is shown as expense in p&l a/c. for eg.
Excise output= 30000
input= 10000
paid= 20000
Is this paid amount Rs 20000 is expense bcose sales is shown including excise tax as well as purchase also shown at inclusive excise.
Arun Gupta
(Chartered Accountant )
(43 Points)
Replied 13 October 2008
if sale shown including excise duty then excise duty shown as an exp.is right
Rohit Khare
(student)
(111 Points)
Replied 14 October 2008
Hi Friends,
I would like to make one thing clear. As per AS-2 on Inventory Valuation and Guidance Note On Acounting for MODVAT/CENVAT credit, w.e.f. 1.4.1999 exclusive method of accounting is to be followed while accounting of excise or vat . As a result profit and loss account is not affected at all. Excise Duty collected on sales is credited to liability account. , excise duty paid on purchases and paid through PLA is accounted in current assets. In short accounting of Excise and VAT is routed through Balancesheet and Profit & Loss A/c. This is also the reason why we have to prepare 145A statement in income tax audit and show that there is no effect on profit.
Ratiranjan
(ACCOUNTANT)
(25 Points)
Replied 29 August 2009
I have no Idea in excise duty .Pls.Write me about PLA IN EXCISE
| Originally posted by :Rohit Khare | ||
| " | Hi Friends, I would like to make one thing clear. As per AS-2 on Inventory Valuation and Guidance Note On Acounting for MODVAT/CENVAT credit, w.e.f. 1.4.1999 exclusive method of accounting is to be followed while accounting of excise or vat . As a result profit and loss account is not affected at all. Excise Duty collected on sales is credited to liability account. , excise duty paid on purchases and paid through PLA is accounted in current assets. In short accounting of Excise and VAT is routed through Balancesheet and Profit & Loss A/c. This is also the reason why we have to prepare 145A statement in income tax audit and show that there is no effect on profit. |
" |
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